ISLAMABAD, September 3: A new study has highlighted growing financial challenges faced by women farmers in Pakistan, showing that climate-related shocks are pushing many to rely on borrowing while limited access to formal financial services continues to restrict their ability to recover and build resilience.
The study, titled “Designing Gender-Responsive Climate Finance: A Diagnostic Study and Product Framework for Women Farmers in Pakistan,” was jointly conducted by Mobilink Bank and the Sustainable Development Policy Institute (SDPI).
The findings were presented at a policy dialogue in Islamabad attended by government officials, financial regulators, banks, development finance institutions and development partners, who discussed ways to develop climate-responsive financial solutions for women working in agriculture.
The research, based on fieldwork across eight districts of Punjab and Sindh, identified a major gap between women’s contribution to agriculture, their exposure to climate risks and their access to financial services.
Climate shocks increase financial pressure on women farmers
According to the study, more than 90% of surveyed women farmers experienced at least one extreme climate-related event during the previous five years, including heatwaves, floods, heavy rainfall or drought-like conditions.
More than 80% reported crop losses or negative impacts on farming activities, with borrowing emerging as one of the most common coping mechanisms across all surveyed districts.
In Khushab, every woman who reported adopting a coping strategy had borrowed money, while many had also sold livestock, potentially affecting their future sources of income.
The study noted that Pakistan’s agriculture sector remains highly vulnerable to climate change, with the devastating 2022 floods causing more than $30 billion in damages and economic losses, while an estimated $16.3 billion was required for climate-resilient reconstruction.
Gender gap remains a challenge in agriculture finance
The report highlighted significant structural barriers preventing women farmers from accessing formal financial services.
Although around 67% of employed women in Pakistan work in agriculture, only 1.5% of agricultural households are formally recognised as female-headed.
Land ownership also remains heavily unequal, with only around 2% of ever-married women aged 15–49 owning land either individually or jointly.
The situation is particularly challenging in Sindh, where the study found that 99.1% of surveyed women did not own land alone or jointly.
The research also pointed towards a digital and financial inclusion gap, noting that 56% of men have full-service financial accounts compared with only 14% of women. Similarly, mobile wallet ownership was reported at 48% among men compared with 11% among women.
Call for women-focused climate finance solutions
Adviser to the Finance Minister Adnan Pasha, who attended the event as guest of honour, stressed the need to formally recognise women farmers as important contributors to Pakistan’s agricultural economy.
He called on financial institutions to design products that address barriers faced by women, including limited access to finance, collateral challenges and climate-related risks.
Khowla Shoaib, Head of Strategy, Sustainability and Women Financial Services at Mobilink Bank, said the findings would help strengthen the bank’s efforts to develop financial solutions tailored for women farmers.
She said agriculture accounts for around 60% of the bank’s gross loan portfolio, while women represent more than 21% of its agriculture-related customers.
Dr Sajid Amin Javed, Deputy Executive Director (Research) at SDPI, said the study was significant because it examined climate finance challenges at the micro-farmer level.
He said recognising women as active participants in agriculture was essential for strengthening Pakistan’s rural economy and improving national economic resilience.
Engr. Ubaid Zia, Head of Energy Unit at SDPI, said women farmers were already performing agricultural work, absorbing climate-related shocks and borrowing to survive, but the formal financial system had yet to fully respond to their realities.
He said developing inclusive financial products based on women farmers’ actual needs was crucial for Pakistan, one of the countries most vulnerable to climate change.
The study called for gender-responsive climate finance models that improve women’s access to credit, digital financial services and resilience-building tools to support sustainable agricultural development.